The experienced Senegal international will join up with former manager Sam Allardyce after his contract expires at the Britannia Stadium on 30th June.
Faye is the first signing by new West Ham boss Allardyce and is expected to be joined by several others as the Hammers look to climb out of the Championship at the first attempt after being relegated from the Barclays Premier League last season.
Faye enjoyed a successful career in English football with Bolton Wanderers and Newcastle United - where he worked under Allardyce - before moving to Stoke in August 2008.
The defender made his name in French football with RC Lens and FC Istres before being brought to Bolton - initially on loan - by Allardyce in July 2005.
The 33-year-old spent two seasons at the Reebok Stadium, appearing in the UEFA Cup and making 60 Premier League appearances for the Trotters under Big Sam.
Faye played 22 times for Newcastle and made a total of 81 Premier League appearances for the Potters including 14 in 2010/11.
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